41. Notes to the cash flow statement

In accordance with IAS 7 (Statement of Cash Flows), the consolidated cash flow statement describes changes in the group’s cash and cash equivalents through cash inflows and outflows during the reporting period.

The item cash and cash equivalents includes cheques and cash on hand as well as cash in transit and bank deposits with a remaining term of up to 3 months.

The cash flow statement distinguishes between changes in cash levels from operating, investing and financing activities. Cash flows from discontinued operations are reported separately where they concern discontinued business sectors.

Cash flows from discontinued operations concern the hypermarket business to be disposed of as well as METRO China.

The following explanations relate to continuing operations.

During the reporting period, cash flows from operating activities amounted to €796 million (2017/18: €766 million). Depreciation/amortisation/impairment losses are attributable to property, plant and equipment at €416 million (2017/18: €410 million), other intangible assets at €113 million (2017/18: €92 million), goodwill at €3 million (2017/18: €0 million) and investment properties at €4 million (2017/18: €6 million). This is contrasted by reversals of impairment losses in the amount of €5 million (2017/18: €4 million).

The change in net working capital amounts to €+27 million (2017/18: €+141 million) and includes changes in inventories, trade receivables and receivables due from suppliers, included in the item ‘other financial assets’. Furthermore, it includes changes in trade liabilities. The decline in the cash flow from changes in the net working capital is predominantly attributable to the segments METRO Germany and METRO Western Europe (excluding Germany).

Other operating activities resulted in a total cash inflow of €28 million (2017/18: cash outflow of €59 million). This item includes other taxes, payroll liabilities, changes in other assets and liabilities as well as deferred income and prepaid expenses. In addition, it includes changes in the assets and liabilities held for sale, adjustments of unrealised currency effects and the reclassification of deconsolidation results recognised in EBIT.

In the reporting period, investing activities led to cash inflow in the amount of €46 million (2017/18: cash outflow of €292 million).

The amount of investments in property, plant and equipment shown as cash outflows differs from the additions shown in the asset reconciliation in the amount of non-cash transactions. These essentially concern additions from finance leases, currency effects and changes in liabilities from the acquisition of miscellaneous other assets.

The financial investments comprise bank deposits with a residual term of more than 3 months to 1 year, as well as near money market investments that are not classified as cash and cash equivalents, such as shares in money market funds. The balance of capital expenditure in financial investments and the disposal of financial investments amounts to €−2 million (2017/18: €−1 million).

In the reporting period, cash flow from financing activities totalled €1,122 million (2017/18: cash outflow of €587 million).

Cash and cash equivalents were subject to restrictions on title in the amount of €0 million (2017/18: €1 million).